artemis december 2017 quarterly report

25 Pages·2017·2.06 MB·English

by  Artemis Resources

ASX / Media Announcement 30 January 2018
Artemis Resources Limited
ARBN: 80 107 051 749
ARTEMIS DECEMBER 2017 QUARTERLY REPORT

Level 3, IBM Building,
1060 Hay Street, Highlights: Quarter Ending 31 December 2017
West Perth, WA Purdy’s Reward (Gold):
Australia, 6006
• Core drilling confirms strong continuity of conglomerates.

• Conglomerate sequence ranges from 4-15m in true thickness in the
PO Box R933
area that has been drilled.
Royal Exchange
NSW • Use of large diameter drilling investigated for sample collection.
Australia, 1225 • Approval received for 20,000 tonne bulk sample.

• Novo completes initial expenditure commitment and Joint Venture
Phone: [phone]
goes live.
Facsimile: [phone]

Email:
[email protected] Mt OscarWits (Gold):
Website: • Anomalous gold mineralisation now confirmed over 14km strike
artemisresources.com.au
length.

• Gold nuggets recovered from Project Area.
Directors:
• Conglomerate rock chip samples up to 15.3 g/t Au and stream

sediments up to 1.37 g/t Au.
Executive Chairman
• Six new strongly anomalous gold areas have now been mapped in
David Lenigas
detail over a 5km strike length associated with conglomerates below
Executive Directors the Mt Roe Basalts.
Ed Mead • Geological mapping shows continuity of prospective conglomerate
Alex Duncan-Kemp units.

Non-Executive Director
Carlow Castle (Cobalt/Copper/Gold):
Sheikh Maktoum al Hasher
• New significant sulphide zone discovered by drilling at Carlow Castle.
Maktoum
• 8m @ 9.09g/t Au, 0.34% Co and 2.85% Cu, from 76m in ARC048

• Discovery located 400m east of previous limits of drilling.

• Sulphides visible from 65m to 87m down hole.
Company Secretary:
• Discovery drilled under previously identified copper/cobalt/gold RAB
Guy Robertson
anomaly.

• Indicates geochemistry will be an effective exploration tool at Carlow

Castle.
Corporate Information
• Drilling is ongoing and will now be expanded to provide information
ASX Code: ARV
for a JORC compliant Cobalt/Copper/Gold resource at Carlow Castle.

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Radio Hill: (Processing Facility and Nickel/Copper/Cobalt)
• Refurbishment program of Radio Hill metallurgical complex commences.
• Radio Hill will be refurbished as a cobalt/copper/nickel/zinc sulphide ore processing
facility with a new gold recovery circuit.
• Provide multi-commodity processing facility for Artemis’ regional deposits.
• Radio Hill is a fully permitted processing facility.
• Stage 1 upgrades planned for 500,000 tonne per annum processing capacity.
• New gold circuit to be installed and integrated into the plant.
• 81 hole (9,000 metre) RC drill programme planned to design open pit to a vertical
depth of 70 metres.
• Radio Hill remains principally unmined from a depth of 70 metres to near surface.
• Outcrop position (Test Pit) is only 400 metres from the Radio Hill plant.
• Fully approved Mining Lease with Heritage Agreements and Aboriginal heritage
surveys in place.
• Drill rig was onsite for 10 January 2018.
• Plans to drill primary sulphide mineralisation to measured/indicated JORC category.

Whundo (Copper):
• Initial sale of stockpiled initial copper completed.
• Work continues on identifying addition oxide copper ore for potential sales.

Silica Hills (Gold):
• Since the release on the 29 September 2017, a further estimated 3.6kg (115 ounces)
of specimen gold has been recovered from Artemis’s Silica Hills Gold Project.
• Gold is located within quartz reefs/pods within a shear zone at Silica Hills, 12km
north of Purdy’s Reward.
• Exploration continues to pay for itself, and Artemis now has enough geological
information to design a drill programme.
• A Programme of Work (POW) for drilling was submitted.
• POW for test trenches and pits to the north of Silica Hills has been approved.

Munni Munni (Platinum Group/Gold):
• Significant Fortescue Group sediments identified overlying Munni Munni PGE
deposit.
• 20km south-west of Purdy’s Reward and along trend.
• Munni Munni has approved Mining and Exploration Licences.
• Heritage agreements, heritage surveys and POWs are already in place.
• 2,218m of previously drilled Fortescue sediments identified in diamond core which
has been stored at Munni Munni.
• 12,437m of RC drilling through the Fortescue sediments to be evaluated.
• 70:30 JV between Artemis and Platina Resources Limited (ASX:PGM).

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Nickol River (Gold):
• Wet gravity gold plant to be relocated to Radio Hill

Mt Clement Paulsens (Gold/Silver):
• Work continues on studies for the development of heap leach open cut operations
at Mt Clement.

Elysian / Hardrock (Gold):
• Artemis has acquired a 70% interest in 12 exploration licences and mining tenement
applications.

Figure 1: Artemis’ tenement package in the Karratha region of Western Australia

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PURDY’S REWARD:
The initial 12 diamond core holes were drilled in a 400x200m area targeting conglomerate zones. These
conglomerate sequences ranged from 4-15m in true thickness. The diamond core provided valuable
data on the gold-bearing conglomerate layer – between the >3.0 billion-year-old metamorphic and
intrusive rocks and the 2.78-billion-year-old Mt Roe Basalt.
Figure 2: Map showing diamond core drilling at Purdy’s Reward.

Figure 3: Uncut core from diamond drill hole 17PDD007. The interval begins at 9.55m and ends at
28.91m.

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Figure 4: Aerial of Trench 1 showing metal detector signals in red and basal conglomerate sample
locations in white.

Figure 5: Map of trenches at Purdy’s Reward.

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Fine grain gold – not just ‘watermelon seeds’ – has been found throughout the multiple conglomerate
layers. By 3 November 2017, we had seven trenches open for exploration. These trenches were 1-3m
deep and all trenches (except Trench 5) encountered conglomerate units. Each trench was mapped
and metal detected. Sampling is generally conducted in areas not metal detected (to avoid biased
sampling). The gold mineralization at Purdy’s is generally coarse and nugget, but bulk samples have
shown significant fine gold, less then 1mm. By 27 November 2017, Novo Resources had completed 60
diamond core drill holes along a corridor 1000m long and 100-400m wide. Geological logging is on-
going, and this was developed into a 3D model of Purdy’s Reward. The large diameter drilling wasn’t
working as well as planned – this does not mean gold wasn’t detected - but that the drilling simply
didn’t work. Hence, it was fortuitous that Artemis Resources applied for a Programme of Works (PoW)
for a 20,000t bulk sample from the Department of Mines, Industry Regulation and Safety (DMIRS) prior
to entering the JV with Novo. Then during the quarter, this PoW was approved and now Artemis and
Novo can use this bulk sample to determine the gold grade at Purdy’s Reward.
By 22 December 2017, Novo Resources had completed 3,294 meters of scout diamond drilling in 69
holes testing approximately 1,550 m strike along the targeted conglomerate sequence – but the
exploration focus has shifted away from drilling to trenching and bulk sampling. Additionally, we have
published the initial 3D modeling of lithologies and received bulk sample results of:
• 15.7 g/t Au from a 304 kg sample of basal conglomerate from Trench 1;
• 17.7 g/t Au from a 371 kg sample of basal conglomerate from Trench 2; and
• 1.3 g/t Au from a 356 kg sample of conglomerate 40 cm above the basal contact

Figure 6: A cross section looking north along the length of Trench 2 showing three stacked
conglomerate horizons and interbedded sandstone. The lowest conglomerate unit rests on
underlying older basement rocks. Three grab samples from this trench yielded fine gold particles
when sieved and panned.

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Mount OscarWits:
A detailed stream sediment sampling program was completed along the east-west 14km strike
between Fairmont and White Quartz Well, with 6 new anomalous areas for gold being identified, along
conglomerate horizons below the Mt Roe Basalt. Detailed mapping has been completed over a
cumulative 5km strike of conglomerates. Results received from rock chip sampling of conglomerate
horizons in conjunction with detailed geological mapping of the area has extended the strike length of
the Landau prospective zone and has identified an entirely new target area called Zephyr (Figures 7
and 8). Highest rock chip assay result in conglomerates from Landau returned 15.3 g/t Au11 Work in
this area is ongoing.
Geological mapping is still ongoing and the rock chip sampling programme has now been expanded to
systematically assess further gold potential of the sedimentary sequences in the area.
Mapping to date has shown that the gold bearing conglomerate units appear to be far more extensive
than previously indicated. The north dipping Landau zone, identified by previous rock chip and soil
sampling, appeared to be about 200m in strike.
Figure 7: Mt OscarWits prospective conglomerate sequence stretching 14km across the Fairmont,
Landau and White Quartz Hill Prospects. 5km of mapped exposure to date.

This has been extended to approximately 500 metres, with an anomalous stream sediment sample a
further 300 metres a long strike, giving a total strike of 800 metres.
Geological mapping has also identified a parallel north dipping conglomerate zone approximately 1km
to the northeast of Landau. This new unit has been named Zephyr and has been mapped over a 1km
strike length and contains rock chip results up to 4.69 g/t Au. Work in this new area is ongoing.
Stream Sediment Sampling Programme:
This recent stream sediment sampling at Mt OscarWits has proved to be highly effective, particularly
with the strongly incised drainage system. A total of 274 samples2 were submitted for analysis
including QA/QC; each sample was collected from approximately 20cm depth in the creek gravels and

1 Refer ASX announcement dated 23 October 2017
2 Refer ASX announcement dated 23 October 2017
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sieved onsite to -2mm with approximately 400g submitted for low level gold and multi-element
analysis. Samples were pulverized to -75micron and analyzed using a 50g sample charge to an aqua-
regia digest with gold determination by ICP MS (Inductively Coupled Plasma Mass Spectrometry).
Artemis comissioned ALS in Perth for this sampling.
Figure 8: Enlargement of the central area of Figure 7, showing rock chip and anomalous stream
sediment results.

Table 1: Summary of Mt OscarWits Stream Sediments results.
Gold Assays g/t Au

75th 90th 95th 99th
Assay Samples Element min Percentile Percentile Percentile Percentile Max Range
“-2mm AuME-
ST44” 266 Au g/t 0.0001 0.0025 0.0046 0.0184 0.7723 1.37 1.37

The Mt OscarWits program was based directly on exploration methods used on a stream sediment
orientation sampling programme at Purdy’s Reward. The maximum gold in the -2mm sample fraction
using this ALS Global analytical technique at Purdy’s Reward was 0.71 g/t Au (Table 2), the maximum
value at Mt OscarWits to date is 1.37g/t Au (Table 1).
Table 2: Summary of Purdy’s Reward Orientation Steam Sediment results.
Gold Assays g/t Au

75th 90th 95th 99th
Assay Samples Element min Percentile Percentile Percentile Percentile Max Range
“-2mm AuME-ST44” 5 Au g/t 0.002 0.0089 0.4296 0.5698 0.682 0.71 0.698

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Figure 9: 8.3 grams of watermelon seed gold nuggets found at Mt OscarWits.

Gold nuggets have been recovered by metal detecting3 at the Fairmont Prospect from the Mt
OscarWits conglomerate trend. Mt OscarWits (E47/1217, Figure 1) is an approved Exploration Licence
covering 117.8km2, and is located about 35km south-east of Karratha and 16km north-east of Purdy’s
Reward conglomerate hosted gold project.
Artemis has recently completed geological mapping, rock chip and stream sediment sampling at Mt
OscarWits which identified extensive sequences of principally quartz and chert clast conglomerates
with anomalous gold mineralisation confirmed over a 14km strike length. The discovery of these
watermelon seed nuggets adds to the further prospectivity of Mt OscarWits conglomerate gold
potential.

3 Refer ASX announcement dated 14 November 2017
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Figure 10: Mt OscarWits prospective conglomerate sequences mapped from the Fairmont Prospect
through to the Churnside Prospects

Figure 11: Enlargement of Nugget Discovery area (Refer Figure 10).

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